Reserve Bank of India (RBI) vide its circular mandated obtaining of Legal Entity Identifier (LEI) for entities involved in non-derivative forex transactions which majorly includes share capital remittance, any income/expense received/made in foreign currency, any sale or purchase of goods/services in foreign currency.
The LEI is a 20-character unique global identification number assigned to legal entities who are parties to global financial transactions. Legal Entity Identifier India Limited (LEIL) acts as a Local Operating Unit (LOU) for issuing globally compatible Legal Entity Identifiers (LEIs) in India.
Participants are required to get LEI registration only if aggregate amount of transaction in foreign currency during the past twelve months is equivalent to or exceeding USD 1 million.
For entities having net worth up to Rs. 200 Crores, the last date to obtain LEI is 31st March, 2020
In case of failure, RBI and Authorized Dealer Bank shall not be able to honor any kind of banking transactions of the defaulter Eligible Participant till the LEI is obtained.
Source: RBI circular no: FMRD.FMID.No.10/11.01.007/2018-19
